Reducing my mortgage with DLA and other benefits

Hi Everyone

I am on ESA(IR) benefits and I get DLA, CTC, CA and HB. Could I use my DLA and other benefits to reduce my mortgage? Has anyone approached DWP about this? I approached a number of disabilities advisory services and their advice were different.

Thanks you all.

MO wrote: Hi Everyone

I am on ESA(IR) benefits and I get DLA, CTC, CA and HB. Could I use my DLA and other benefits to reduce my mortgage? Has anyone approached DWP about this? I approached a number of disabilities advisory services and their advice were different.

Thanks you all.

Hi MO,

Welcome to Benefits and Work

I am rather confused by your post !

You state that you are receiving Housing Benefit (HB) which is paid to tenants of Social Housing for rent payments, then you also ask how you can reduce your mortgage ?

Do you have a property on a "Shared Ownership Scheme" ? (Rent & Mortgage for the one property)

You can spend your DLA and other benefits on whatever you wish !

There is also Support for Mortgage Interest (SMI) for claimants in receipt of IR ESA.

If you are currently renting, and considering buying, whether or not you could obtain a Mortgage whilst in receipt of the "benefits", would be up to the Mortgage Provider.

If you are considering buying, you should also consider how secure your benefits are, especially with the change over to PIP for all DLA recipients who were under 65 on 08/04/13 starting nationally after October 2015.

bro58

Hi bro58

Thank you for your reply. I am very sorry for not making it clear. I am on ESA(IR) benefits and I get DLA, CTC, CA and SMI (I thought it is also called or regarded as housing benefits). My question was if I could use my DLA and other benefits to reduce my mortgage balance? Would DWP accuse me of deliberately depriving myself of income/saving if I use my benefits and allowances to reduce my mortgage balance? My property is not shared homeownership. I would rather save every penny from my benefits and allowances and pay it towards my mortgage than spending it. Every year DWP writes to my mortgage lender enquiring about my mortgage and I am not sure if they are checking on my mortgage balance.

MO wrote: Hi bro58

Thank you for your reply. I am very sorry for not making it clear. I am on ESA(IR) benefits and I get DLA, CTC, CA and SMI (I thought it is also called or regarded as housing benefits). My question was if I could use my DLA and other benefits to reduce my mortgage balance? Would DWP accuse me of deliberately depriving myself of income/saving if I use my benefits and allowances to reduce my mortgage balance? My property is not shared homeownership. I would rather save every penny from my benefits and allowances and pay it towards my mortgage than spending it. Every year DWP writes to my mortgage lender enquiring about my mortgage and I am not sure if they are checking on my mortgage balance.

Hi MO,

DLA, nor indeed PIP is classed as income for the IR ESA entitlement means test, and you can spend it on whatever you wish.

Any other benefits that are classed as "Income" such as CA (Although I suspect that you will be receiving Carer Premium (CP) on top of your IR ESA (currently £34.60/Week) rather than full CA) will have already been deducted from your maximum IR ESA entitlement.

Therefore, how you spend them is your choice.

Deprivation of capital is generally when you have capital, assets and savings above the limit allowed for payment of IR ESA and deliberately spend it to bring it down to a level that entitles you to IR ESA : Asset rule for ESA(IR)

There should be no problems in making extra payments to your Mortgage if you wish to, just as you could pay off a credit card or a loan early.

You should be aware, that reducing your Mortgage may also reduce the amount of interest owed on it, which in turn could affect the amount of SMI that you receive.

You would best advised getting independent advice on this before proceeding.

Your one and only place of residence is not classed as capital for IR ESA means test purposes.

bro58

Thank you very much bro58